CodeRabbit, an AI-powered code review service, raised $143 million in a new funding round, according to an announcement on BusinessWire, valuing the startup at $1.5 billion on a post-money basis.
The round comes as enterprises deploy AI-generated code at scale. CodeRabbit's core function is to scan code changes for potential bugs and security issues before they reach production, a task that traditionally required human engineers to spend time in peer review.
Nvidia is among the startup's backers. The funding amount and valuation place CodeRabbit in the upper tier of specialized developer-tools startups that have raised capital since 2023, when enterprise adoption of generative AI tools for coding began to accelerate. GitHub Copilot, the code-completion tool owned by Microsoft, has more than 1 million paying users as of 2025, and demand for downstream quality-control layers has grown alongside it.
CodeRabbit's pitch to enterprises is that it automates parts of code review that human teams would otherwise perform manually, freeing engineers for higher-level work. The company also introduced what it calls agentic change management, a feature intended to let the service propose fixes to flagged issues rather than simply identify them.
The startup was founded in 2023 and has grown to serve customers across financial services, healthcare, and enterprise software. It operates in a category that includes other funded entrants such as Sweep and Sourcegraph, though CodeRabbit's specific focus on generated-code quality distinguishes its positioning.
CodeRabbit's valuation nearly doubled from a reported $800 million in an earlier 2025 round. The compressed timeline between rounds and the higher valuation indicate sustained investor confidence in the code-quality layer as a durable market category. CodeRabbit will need to demonstrate sustained revenue growth and customer retention to justify the 1.5 billion dollar valuation in an environment where developer-tools funding has cooled since 2024.
